In October last year, The Cornwall and Isles of Scilly Credit Union Limited, which was not-for-profit co-operative, reported it had been operating in the red for more than a year.

According to Cornish Community Banking its members should not be worried about losing their savings as a result of the liquidation.

"We would like to reassure members of CISCU that your money is safe. As CISCU was authorised by the Financial Services Authority (FSA), your deposits are protected by the Financial Services Compensation Scheme (FSCS). All deposits are protected (including savings and CUCA accounts)," it said in a statement.

The Cornish Credit Union never took off like it has done in Canada or Ireland. It was essentially a poor persons bank and needed people with a range of incomes to bank into it as what existed was the poor lending to the poor. Its a great pity that there are so many people in Cornwall who bank with the highwaymen that led us to financial and social disaster in 2008.